When Thieves Steal Your Good Name, Can Your Business Survive?

HARTFORD, Conn., Nov. 30 /PRNewswire-FirstCall/ -- Cleaning up problems caused by identity theft, the nation's fastest growing crime, is time- consuming and expensive, especially when theft spawns new identities and accounts based on the stolen information.

For small business owners, the problems can be even worse. An assault on personal integrity is only the first broadside, and it's often followed quickly by an attack on credit worthiness. The time spent patching up credit reports takes its own heavy toll on the enterprise, according to The Hartford Financial Services Group, Inc. . That's why The Hartford is today announcing a new type of identity protection aimed at owners of small businesses.

Once identity theft is suspected, speed is paramount to identify and fix the problem. Beginning January 1, 2006, The Hartford, one of the largest and fastest growing insurers for small businesses, will offer a swift solution in the form of its new Identity Recovery Coverage for Business Owners, a feature built into most of its Spectrum and Spectrum Xpand small business policies.

On average, it takes victims of identity fraud about 60 hours and $1,200 to correct the problem. The thief may have piled up debt on new credit cards, used the stolen identity to commit crimes or bought and sold property over many months before the business owner spots the problem.

An attack on credit often bears a distinct signature, and recognizing it quickly is the first defense: a bank might unexpectedly reject a loan application; collection agencies might call for repayment of an unknown debt; a credit card statement may arrive with mysterious transactions; a credit report may reveal background checks from unfamiliar companies.

The Hartford's coverage, which protects individuals including a sole proprietor, partners of a business and owners of 20 percent or more of a business, though not the business entity itself, offers a three-pronged approach to the identity theft problem:

1) First, it starts with a toll-free Identity Recovery Help Line at The Hartford where a business owner can call for advice and information on how to respond to a suspected case of identity theft. 2) Once a theft is confirmed, an insurance claim is referred to an expert Identity Recovery Case Manager who will guide the business owner through the necessary steps to correct his or her personal credit history and identity records. 3) Finally, while many financial institutions absorb fraudulent charges, there are still expenses in reclaiming identity. The Hartford's Identity Recovery Coverage for Business Owners also provides identity theft expense reimbursement coverage of up to $15,000 for certain out- of-pocket expenses, such as obtaining credit bureau reports, postage, phone and shipping fees, and notary and filing fees.

"When you own a business, your good name on the sign above your door is often as important as the products and services you offer, so rapid response is crucial when that name is tarnished," said Jim Ruel, senior vice president of small commercial insurance at The Hartford. "Although, most people are inexperienced in tackling this problem, the Identity Recovery Case Managers can speed the recovery process by navigating through the maze of credit bureaus, creditors and financial institutions. It's a practical solution to a very real problem that's growing in frequency and sophistication."

While insurance against the worst case scenario provides peace of mind for a business owner, preventing identity theft is far better than recovering from it. To lessen the chances of falling victim to identity theft, Ruel also recommends these tips for business owners and individuals alike:

* Order and check your credit reports at least once a year. Check reports for accuracy and for signs of fraud, such as unauthorized charges, credit accounts that you did not open; credit applications you did not complete; credit inquiries you did not make and delinquencies you did not cause. Check accuracy of identifying information in your report including your name, address, and Social Security number. To order your free annual report from one or all the national consumer reporting companies, visit http://www.annualcreditreport.com/, or call toll-free 877-322-8228. * Guard your Social Security number. Release Social Security number only when necessary, such as on tax forms, employment records and banking forms. When a business asks to use your Social Security number, ask to use another number. Check your Social Security Earnings and Benefits statement each year to ensure no one is using your number for employment. * Mail outgoing bills from post office collection boxes instead of unsecured mail boxes. Don't leave outgoing mail for your postal carrier to pick up. Pay attention to billing cycles and keep track of incoming mail, particularly tax forms, pay stubs, credit card bills and bank statements. Have the post office hold the mail when you are away. * Destroy documents before disposal. Tear or shred your charge and ATM receipts, copies of credit applications, insurance forms, physician statements, checks and bank statements. Also, destroy expired credits cards and convenience checks or credit offers you get in the mail. * Shop online with caution. Designate a single, distinct credit card with a low limit for on-line shopping. Don't use a debit card. To determine if a site is safe, look for the "lock" symbols in the status bar at the bottom of your browser window. Look for the words "Secure Sockets Layer" or the acronym "SSL" in the merchant's privacy statement. Never send payment information via e-mail. * Practice Safe Computing. Update your virus protection software regularly. Download and install security patches for your operating system or browser. Use a firewall program, especially if you use a high-speed Internet connection like cable, DSL or T-1, which leaves your computer connected to the Internet 24 hours a day. Never store personal information on a laptop computer which is more easily stolen. * Pick your PINs carefully. Do not use any part of your Social Security number for any Personal Identification Number (PIN). Also, avoid a PIN that a thief could easily deduce, such as birth date, pet's name, mother's maiden name, address, telephone number, or consecutive numbers. Memorize all your PINs, and shield the PIN pad when you are entering the number in a retail establishment or at an ATM to prevent others from observing your PIN. * Lock important documents. Keep all documents with personal or account information under lock and key in your home. Don't leave them unsecured and accessible to visitors. Always keep your purse or wallet in a safe place at work, preferably a locked drawer. Carry only those cards you need. * Record your credit and bank account information. List or photocopy all your credit and debit cards, including the account number, expiration date, credit limit and the telephone numbers of customer service and fraud departments. Safeguard these lists. If one of your cards is stolen, you can contact card issuers and banks faster with the right information. Make a similar list for your bank accounts. * Don't give out personal information on the phone, through the mail or over the Internet unless you've initiated the contact. Identity thieves may pose as representatives of mortgage companies, banks, credit card companies, Internet Service Providers and even government agencies to get you to reveal your personal information.

While there is no way to completely prevent identity theft, every small business owner can exercise caution and take quick action to minimize the problems and many hours of frustration it creates.

The Hartford is one of the largest financial services and insurance companies in the U.S., with worldwide revenues of $22.7 billion in 2004. The company is a leading provider of investment products, life insurance and group benefits; automobile and homeowners products; and business property-casualty insurance. International operations are located in Japan, Brazil and the United Kingdom. The Hartford's Internet address is http://www.thehartford.com/.

Some of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include those discussed in our Quarterly Reports on Form 10-Q, our 2004 Annual Report on Form 10-K and the other filings we make with the Securities and Exchange Commission. We assume no obligation to update this release, which speaks as of the date issued.

Contacts: Sue Honeyman 860-547-4976 shoneyman@thehartford.com Debora Raymond 860-547-9613 debora.raymond@thehartford.com